Pfizer Inc (PFE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 15.22% | 47.75% | 42.53% | 43.63% | 43.80% |
| Operating profit margin | -47.25% | 16.31% | 4.17% | -12.95% | -10.08% |
| Pretax margin | 1.72% | 34.59% | 29.32% | 22.88% | 33.15% |
| Net profit margin | 3.62% | 31.27% | 27.04% | 21.99% | 31.98% |
Pfizer Inc.'s profitability ratios have shown some fluctuations over the past five years. The gross profit margin, which indicates the percentage of revenue remaining after deducting the cost of goods sold, decreased from 80.25% in 2019 to 57.34% in 2023. This downward trend suggests a decrease in the company's ability to generate profits from its core operations.
Similarly, the operating profit margin, which measures the proportion of revenue that translates into operating income, experienced significant variation, with a notable decline from 37.15% in 2022 to 5.74% in 2023. This substantial drop indicates that Pfizer's operating efficiency may have weakened in the most recent year.
The pretax margin, reflecting the percentage of revenue that converts to pre-tax income, also demonstrated fluctuations, with a sharp decrease from 34.62% in 2022 to 1.81% in 2023. This decline suggests that Pfizer's pre-tax profitability has been impacted by various factors in the most recent year.
Lastly, the net profit margin, which shows the proportion of revenue that translates to net income, decreased from 31.44% in 2019 to 3.62% in 2023. This declining trend indicates that Pfizer's ability to convert revenue into bottom-line profit has been diminishing over the years.
Overall, the profitability ratios of Pfizer Inc. reveal a general trend of decreasing margins over the past five years, suggesting potential challenges in maintaining profitability and efficiency in its operations. Investors and stakeholders may need to closely monitor these ratios to assess the company's financial performance and sustainability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -12.18% | 8.31% | 1.87% | -3.50% | -3.01% |
| Return on assets (ROA) | 0.93% | 15.92% | 12.14% | 5.94% | 9.56% |
| Return on total capital | 2.13% | 27.96% | 22.15% | 10.94% | 18.35% |
| Return on equity (ROE) | 2.38% | 32.79% | 28.47% | 14.48% | 25.38% |
Pfizer Inc.'s profitability ratios indicate varying performance levels over the past five years.
1. Operating return on assets (Operating ROA): This ratio measures operating income generated per dollar of assets. Pfizer's Operating ROA declined significantly from 18.90% in 2022 to 1.48% in 2023, indicating a decrease in operational efficiency in utilizing its assets to generate profits.
2. Return on assets (ROA): ROA evaluates overall profitability by measuring net income relative to total assets. Pfizer's ROA also experienced a notable decline from 15.91% in 2022 to 0.94% in 2023, suggesting a reduced ability to generate profits from its asset base.
3. Return on total capital: This ratio indicates the effectiveness of Pfizer in generating returns for all its capital providers. The return on total capital decreased from 29.46% in 2022 to 3.15% in 2023, signifying a substantial drop in profitability relative to the total invested capital.
4. Return on equity (ROE): ROE reflects the returns generated for shareholders' equity. Pfizer's ROE decreased from 32.80% in 2022 to 2.38% in 2023, highlighting a significant reduction in the ability to generate profits for its equity investors.
In summary, Pfizer Inc.'s profitability ratios have shown a downward trend in 2023 compared to previous years, indicating challenges in maintaining historical levels of profitability and efficiency in generating returns for both assets and equity. Further analysis and investigation may be required to understand the underlying reasons for the decreased profitability performance.